What happens if no qualified transferee can be found during the transition period for a C12 Group franchise?

According to the 2025 C12 Group FDD, if a franchisee is temporarily unable to operate their franchise for 60 days or more due to reasons outside of their control, such as health issues, disability, or death, C12 Group may assist in overseeing the business during a transition period of up to six months. However, the FDD states that no person will be permitted to hold the Franchise who is not a qualified Principal Chair.

During this transition period, if the franchisee is not able to resume full operating capacity, or if a qualified transferee cannot be found to take over the franchise, C12 Group has the right to terminate the Franchise Agreement.

This clause protects C12 Group by ensuring that all franchisees meet their standards for Principal Chairs. For a prospective franchisee, this means that finding a qualified buyer is crucial if they need to exit the business due to unforeseen circumstances, otherwise they risk losing the franchise entirely. It also highlights the importance of having a plan for business continuity in case of unexpected events.